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"A Brother of Medicine" Hengrui went public in Hong Kong for the second time? The "A+H" craze has indeed hit.
A few days ago, market news rumored that Hengrui Pharma (600276.SH) may go public in Hong Kong in 2025, with an estimated financing amount of 2 billion US dollars.
In this regard, Hengrui Pharma responded to Tradewind (ID:TradeWind01) and said "no comment".
For Hengrui Pharma, which has been adding innovative drugs in recent years, listing in Hong Kong is conducive to timely replenishment of ammunition.
In the first half of 2024, the revenue of innovative drugs in Hengrui Pharma has reached 6.612 billion yuan, accounting for 48.61% of the revenue.
Adding the B side of innovative drugs is an increasing research and development cost. In the first half of 2024, it has reached 3.038 billion yuan, a year-on-year increase of 30.33%.
At the same time, Hengrui Pharma continues to seek overseas cooperation to promote innovative drugs to the sea. In this context, listing in Hong Kong can not only enhance financial strength, but also enhance international visibility.
This is not the first A-share pharmaceutical company to be listed in Hong Kong this year.
On May 13th, Reuters's IFR reported that Bailey Tianheng (688506.SH) would go public in Hong Kong.
That night, Bailey Tianheng admitted that it was planning a listing, and now it is in the IPO review stage of the Hong Kong Stock Exchange.
With the accelerated pace of domestic pharmaceutical enterprises going to sea, financing in Hong Kong may be becoming a more efficient option.
On October 18th, the Hong Kong Securities Regulatory Commission and the Hong Kong Stock Exchange jointly announced the launch of a new listing policy, which is expected to speed up the listing review of A-share companies with a market value of 10 billion Hong Kong dollars. If A-share companies meet the two major conditions of an estimated market value of at least 10 billion Hong Kong dollars and the financial data in the first two months of submission meet the requirements of A-shares, the CSRC and the Hong Kong Stock Exchange will complete the regulatory assessment within no more than 30 business days.
"It is not excluded that there are currently the fifth set of standard listed companies in science and technology innovation board that are considering the possibility of listing on the Hong Kong Stock Exchange." An investment banker in Beijing told Tradewind (ID:TradeWind01).
However, whether HKEx can attract more A-share companies to list in Hong Kong still depends on the market situation.
"Not only A-share companies, but now a large part of the wait-and-see groups are still enterprises that have been withdrawn from IPO before. They are hesitant to go to the Hong Kong Stock Exchange, but they are worried about falling into the dilemma of not being able to get money and breaking after listing, so everyone is still watching the opportunity." An investment banker in Shanghai told Tradewind (ID:TradeWind01).
After the Federal Reserve cut interest rates more than expected in September this year, many market institutions expected the financing market of the Hong Kong Stock Exchange to pick up.
Judging from the listing of new shares, it is true. Wind data shows that the total amount of IPO financing of the Hong Kong Stock Exchange in September and October this year (as of October 24) has reached 47.925 billion Hong Kong dollars, which is 4.43 times that of the same period last year.
The biggest contributor among them is Midea Group (000333.SZ, 0300.HK).
On September 17th this year, Midea Group landed on the Hong Kong Stock Exchange, raising HK$ 31.014 billion, which is expected to become the IPO project with the highest financing amount in the year.
Next, whether there will be more A-share companies with a market value of 10 billion going to the Hong Kong Stock Exchange, the market is waiting to see.
Risk warning and exemption clause
The market is risky and investment needs to be cautious. This paper does not constitute personal investment advice, nor does it take into account the special investment objectives, financial situation or needs of individual users. Users should consider whether any opinions, viewpoints or conclusions in this article are in line with their specific situation. Invest accordingly at your own risk.